Distant horizons

The government wants to help insurers match their liabilities. Investors should be grateful inflation makes ultralong bonds highrisk. But the measurement of inflation can be quite political. Investors have to be willing to believe that the statisticians will stay honest.

Context News

The UK government is considering issuing 50year inflationlinked bonds, according to the Financial Times. Arnaud Mares, head of portfolio strategy at the Debt Management Office, said: We recognise the fact that many [investors] think ultralong linkers would be even better than a conventional 50year bond. The new bonds would be issued shortly after the 50year fixedrate bonds expected in May.